Tag: commercial studies

Quizzes (186) Questions (1136)

Questions Related to commercial studies

Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

As per the Employees Provident Funds and Miscellaneous Provisions Act, $1952$, the employer has to deposit PF amounts by the _______________.

  1. First week of the following month

  2. Last week of the following month

  3. Middle of the following month

  4. Last day of the following month
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

According to the employees provident funds and miscellaneous provisions act, 1952 the employees have to contribute a total of minimum twelve percent of their salary with dearness allowance to the funds established under the schemes prescribed by the central government. The contribution to the provident fund is deposited by the middle of the next month from the date when the salary got due. 

Multiple choice commercial studies industrial relations, trade unions and social security concept, scope and social security in india concept of social security insurance - introduction and importance

PF amounts i.e. employees & employers share has to be deposited _____________.

  1. With income tax authorities

  2. State Provident Fund Commissioner

  3. Regional Provident Fund Commissioner

  4. None of above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

According to the employees provident funds and miscellaneous provisions act, 1952 the employees have to contribute a total of minimum twelve percent of their salary with dearness allowance to the funds established under the schemes prescribed by the central government. The contribution to the provident fund is deposited by the middle of the next month from the date when the salary got due to the Regional provident fund commissioner. 

Multiple choice commercial studies sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

The debentures which are duly recorded in the register of debenture holders maintained by the company and which can be transferred only through a regular instrument of transfer are called as _________ debentures.

  1. Secured

  2. Unsecured

  3. Convertible

  4. Registered
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Registered debentures are duly recorded in the register of debenture holders. It is maintained by the company and which can be transferred only through a regular instrument of transfer.

Multiple choice commercial studies sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

___________ debentures are which create a charge on the assets of the company, thereby mortgaging the assets of the company.

  1. Registered

  2. Bearer

  3. Secured

  4. Unsecured
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Secured debentures are debentures secured by a charge on the fixed assets of the issuer company. For instance, mortgage debentures secured on land of the company. When the issuer company fails on payment of either the principal or interest amount, the assets of the company can be sold to repay the liability to the investors.

Multiple choice commercial studies sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

__________ debentures are those debentures that can be converted into equity shares after the expiry of a specified period.

  1. Secured

  2. Unsecured

  3. Registered

  4. Convertible
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Debentures are an important instrument to raise long term debt capital. They are issued by a company and bear a fixed rate of interest and the company promises to pay the debt at a future date. The debentures that can be converted into equity shares within a specified period of time are known as convertible debentures.

Multiple choice commercial studies sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

The debentures that are transferable by mere delivery are called as __________ debentures.

  1. Secured

  2. Unsecured

  3. Convertible

  4. Bearer
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The debentures which are payable to bearer and whose names do not appear in the register of debenture holders are known as “Bearer Debentures”. Coupons for interest are attached to the document and interest is paid to the holders as it falls due. Bearer Debentures are transferable by mere delivery.

Multiple choice commercial studies sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

___________ debentures are those that do not carry any charge or security on the assets of the company.

  1. Secured

  2. Registered

  3. Unsecured

  4. Convertible
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Unsecured debentures are debentures that are not supported by a collateral security. No specific assets will be set aside against unsecured debentures. It is basically a loan with out any protection. They are backed only by the general creditworthiness of the issuer.

Multiple choice commercial studies sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

Debentures that are repaid before other debentures are repaid are known as ________ debentures.

  1. convertible

  2. non-convertible

  3. first

  4. second
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Debentures that are repaid before other debentures are repaid are known as first debentures. First debenture holders have the right over the company's asset at first.

Multiple choice commercial studies sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

The debentures which cannot be converted into equity shares are called ___________ debentures.

  1. Secured

  2. Unsecured

  3. Convertible

  4. Non-convertible
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Debentures are given out to the creditors as a promise to repay the debt held by the company at a fixed rate of interest. Some of the debentures are convertible and non-convertible. The debentures which cannot be converted into equity shares are called as non-convertible debentures.

Multiple choice commercial studies sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

The _______ debentures are those which are paid after the first debentures have been paid back.

  1. Secured

  2. Unsecured

  3. First

  4. Second
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The second debentures are those which are paid after the first debentures have been paid back. Second debenture holders have the secondary charge over the company's assets.